Slide 1: Earnings Presentation Q3 2023
Earnings Presentation Q3 2023 November 2, 2023 This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words
Slide 3: Q3 23 Business Highlights
Q3 23 Business Highlights • Q3 revenue above midpoint of guidance – $50.6M of total revenue, Products revenue of $38.1M and development revenue of $12.5M above mid-point of guidance • Adjusted EBITDA in-line with guidance despite gross margins below range – Adjusted EBITDA of ($1.9M) within range du
Slide 4: Revenue | 95% of total revenue from non-China customers
Revenue | 95% of total revenue from non-China customers Quarterly Revenue – Geography Geography $ Millions Q3 ‘23 vs. Q3 ‘22 Change -16% $75 $72 $69 $67 $66 $64 $62 $61 $61 $60 $60 $57 $54 $53 $52 $51 $52 China $51 -50% $48 $46 $44 $43 $43 $45 $42 $42 $37 $37 $35 $29 $30 $30 81% 89% $25 $26 89% 92%
Slide 5: Revenue | By end market
Revenue | By end market Quarterly Revenue – By Market Market $ Millions Q3 ‘23 vs. Q3 ‘22 Change -16% $75 $72 $69 $67 $66 $64 $62 $61 24% $61 $60 $60 20% 29% 25% $57 27% $54 $53 $52 $51 $52 23% 25% Microfabrication 27% $51 $48 29% 20% -32% $46 24% 23% -34% Non-China $44 $43 $43 27% $45 $42 $42 24% -
Slide 6: Financial Update
Financial Update
Slide 7: Summary Financial Results | Revenue and Gross Margin
Summary Financial Results | Revenue and Gross Margin Quarterly $ Millions; % of Revenue Q3 2022 Q3 2023 Total Revenue $60.1 $50.6 Products Revenue 48.0 38.1 Development Revenue 12.1 12.5 Gross Margin 22.4% 19.6% Products Margin 26.4% 23.9% Development Margin 6.5% 6.8% 7
Slide 8: Gross Margin | Product and Development
Gross Margin | Product and Development Revenue and Gross Margin – Quarterly Revenue $ Millions; % of Revenue Overall GM % $80 40% 37% Products GM % 36% 36% 36% $70 33% 33% 35% 35% 36% 32% 35% 34% 34% 30% 30% 33% 33% 32% $60 31% 28% 29% 30% 30% 29% 30% 30% 29% 29% 30% 26% 28% 24% 24% 24% $50 27% 26%
Slide 9: Operating Expenses | R&D and SG&A
Operating Expenses | R&D and SG&A Operating Expenses (Non-GAAP) $ Millions; % of Revenue $20 $19.3 $19.3 $19.5 50% SG&A $18.8 $18.1 $18.2 $17.6 R&D $17.2 $16.6 OpEx as % of Sales $16.0 $15.1 40% $14.7 8.6 $15 $14.2 $14.3 8.4 9.0 7.8 8.1 10.1 $13.0 $12.9 $12.8 7.7 $12.5 $12.9 8.5 $12.1 7.8 $11.4 $11.
Slide 10: Summary Financial Results | Profitability and Cash Flow
Summary Financial Results | Profitability and Cash Flow Quarterly $ Millions; % of Revenue Q3 2022 Q3 2023 Net Income (Loss) ($13.0) ($11.9) Non-GAAP Net Income (Loss)* (5.1) (4.9) Net Income (Loss) Per Share (diluted) (0.29) (0.26) Non-GAAP Net Income (Loss) Per Share (diluted)* (0.11) (0.10) Adjus
Slide 11: Strong Balance Sheet and Working Capital Management
Strong Balance Sheet and Working Capital Management Cash and Debt Position ($M) Accounts Receivable ($M) and Inventory ($M) and Days Sales Outstanding (DSO) Days of Inventory (DOI) 157 155 73 $90 141 152 160 $200 $90 70 75 67 $80 $81 131 144 65 140 $80 $80 131 $77 $175 $166 61 62 $74 140 60 $71 $147
Slide 12: Outlook | Q4 2023
Outlook | Q4 2023 • Q4 2023 Revenues of $45 million to $50 million; midpoint of $47.5 million – Laser Products: approximately $35.5 million at midpoint – Advanced Development: approximately $12 million at midpoint • Q4 2023 Gross Margin of 16% to 20% – Laser Products: 20% to 25% – Advanced Developme
Slide 13: Simply brilliant
Ve eeceeee Simply brilliant
Slide 14: Appendix
Appendix
Slide 15: Supplemental Information | Revenue and Gross Margin
Supplemental Information | Revenue and Gross Margin nLight, Inc. 2018 2019 2020 2021 2022 2023 (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Totals Revenue: Products $ 42,467 $ 51,705 $ 51,025 $ 46,162 $
Slide 16: GAAP to Non-GAAP Reconciliation | Operating Expenses
GAAP to Non-GAAP Reconciliation | Operating Expenses nLight, Inc. 2018 2019 2020 2021 2022 # 2023 (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Totals GAAP research and development ("R&D") expense $ 4,283
Slide 17: GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS
GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS nLight, Inc. 2018 2019 2020 2021 2022 2023 (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Total Net income (loss) $ 2,916 $ 4,653 $ 4,0
Slide 18: Supplemental Information | Key Revenue Metrics
Supplemental Information | Key Revenue Metrics nLight, Inc. 2018 2019 2020 2021 Q 2022 2023 Q (in thousands, except per share data) Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 Q3 Q4 Totals Q1 Q2 3 Q3 Q4 Totals Q1 Q2 3 Q3 Totals Revenues by end market Industrial $ 19,146 $ 25,251 $
Slide 19: Supplemental Information | Fiber Laser Revenue by Power Level
Supplemental Information | Fiber Laser Revenue by Power Level Fiber Laser Revenue by Power – Quarterly Percent of total fiber laser sales 100% 9% Low Power 14% 12% 11% 14% 17% 17% 12% 12% 90% 22% 19% 17% 20% 19% < 2kW 27% 27% 31% 30% 34% 32% 35% 80% 43% 41% 45% 51% 49% 34% 28% Medium Power 35% 32% 2